What happened when the U.K. last saw a hung parliament

09.06.2017 / 11:08

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When the U.K. last saw a hung parliament in 2010 election, Conservatives also fell short of a majority and got fewer seats than they're likely to secure this time around (Cameron won 306). But if a week is a long time in politics, seven years is an eternity, and the landscape has altered drastically.

Still, the market reaction back then could prove instructive: the pound dipped, recovered as the coalition was put together, and then shifted even lower. A coalition now looks pretty untenable, but it underscores that there are still a lot of twists and turns to this thing.

On the chart we can see that UKX fell with 326 points in the day of the elections, and rose 388 points from 07.05 to 14.04 2010 to regain its positions.

Source: Bloomberg Pro Terminal

Junior Trader Stefan Panteleev

Varchev Traders

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What happened when the U.K. last saw a hung parliament

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